Oak Brook-based A.M. Castle & Co., a global distributor of specialty metals and supply chain services, said Monday it filed for Chapter 11 reorganization with a repayment plan for its creditors.
Attaching the plan with the bankruptcy filing will help the company move faster through the court process. It aims to emerge from bankruptcy in about two months, said company spokesman Justin Frakes.
The court documents list about $329 million in debt. The top creditors include Timkensteel Corp. in Chicago with $2.5 million; Huntington Alloys in Chicago with $1.9 million; and The Boeing Co. of Atlanta, Georgia, with $997,421.
In April, A.M. Castle CEO Steve W. Scheinkman said the struggling company was working with its creditors to ensure a fair plan to help it restructure its debt. Since then, 98 percent of its creditors agreed to the plan.
A.M. Castle filed its so-called Prepackaged Joint Chapter 11 Plan for Reorganization in U.S. Bankruptcy Court in Delaware. The plan was approved by 35 creditors listed in its filing. They also have the option to get paid and/or become a shareholder in the company, Frakes said.
"This filing testifies to the support of our secured creditors and is the next critical step in returning A.M. Castle to industry leadership," Scheinkman said in a statement.
In the meantime, the business will continue to operate as usual and no layoffs are expected, Frakes said.
The company had 908 employees at the end of 2016, according to a filing.
Founded in 1890, A.M. Castle & Co. serves customers in various industries, such as oil, gas, aerospace and industrial equipment. It specializes in the distribution of alloy and stainless steels, nickel alloys, aluminum and carbon. Together, Castle and its affiliated companies operate out of 21 metals service centers throughout North America, Europe and Asia, the company website said.